Gilead Sciences shares climbed 15.7% in October, moving close to their 52-week highs after the biopharmaceutical company reported third-quarter results above Wall Street expectations and increased its full-year sales guidance. The figures and market data cited in the report are as of November 3, 2026.

On October 29, Gilead reported non-GAAP earnings per share of $2.55, compared with estimates of $2.17, and revenue of $8.3 billion, against expectations of $7.79 billion. Sales from its base business rose 16% year over year to $8.2 billion, which the company described as its strongest growth in more than a decade. Gilead raised its 2026 product sales guidance to between $31 billion and $31.3 billion.

HIV remains the company’s largest business. Sales in the segment increased 18% to $6.2 billion, while Biktarvy reached a 53% share of the U.S. HIV treatment market. Gilead said the drug’s composition-of-matter patent protection runs through 2036. The quarter also benefited from a larger-than-usual inventory build, with management expecting less favorable inventory dynamics in the fourth quarter.

HIV prevention sales nearly doubled. Yeztugo and Descovy together account for 50% of the PrEP market, at an annual run rate of $4 billion, according to the report. Outside HIV, Trodelvy sales rose 42% to $506 million and Livdelzi sales increased 93%. Cell therapy was a weaker area, declining 18%.

Gilead’s pipeline includes 49 clinical programs. Two regulatory decisions are approaching: the FDA is scheduled to decide on anito-cel, a cell therapy for multiple myeloma, on December 23, while a decision on once-weekly oral PrEP is expected in February 2027.

The company reported an 88% product gross margin and a 50% operating margin in the third quarter. It returned about $1.4 billion to shareholders during the period, including $370 million in share buybacks, and has increased its dividend for 11 consecutive years, according to the report.

Management expects HIV revenue and earnings per share to continue growing in 2028, despite an estimated $1.5 billion revenue headwind from Medicare payment cuts to Biktarvy that are due to take effect in January 2028. The report also cites consensus analyst projections compiled by InvestingPro, which give the stock a moderate-buy rating and a high price target of $185.

Sources: Investing.com News.